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Bitcoin hits record high above $124K on hopes of rate cuts
Bitcoin reached an all-time high on Thursday, as the world’s largest cryptocurrency was boosted by growing expectations of a September interest rate cut and optimism over increased corporate buying.
The world’s second-largest cryptocurrency, Ether, also rose on Thursday, coming within arm’s reach of its 2021 record high. The token was further supported by a string of corporate purchases this week, as more companies adopt the Bitcoin treasury strategy popularized by Michael Saylor’s MicroStrategy.
Bitcoin hit a record high of $124,436.8 before paring gains to trade up 3.2% at $123,164.1 as of 07:47 (UTC+03).
Bitcoin buoyed by rate cut hopes and corporate interest
The top cryptocurrency has been on the rise since last week, driven by increased corporate purchases and softer U.S. inflation data, which bolstered bets on a September rate cut. Markets are now pricing in nearly a 97% probability of a 25-basis-point cut, according to the CME Fedwatch tool.
Lower interest rates support cryptocurrency prices by freeing up more liquidity for investment in speculative assets.
Bitcoin has also been boosted by rising corporate buying in recent weeks, as more firms follow the treasury strategy championed by MicroStrategy Incorporated (now Strategy) founder Michael Saylor.
Metaplanet Inc (TYO:3350), the world’s sixth-largest corporate Bitcoin holder, said earlier this week it had purchased more than $60 million worth of BTC. The company is raising billions in fresh capital to buy even more BTC.
Earlier in August, Strategy also announced a major Bitcoin purchase, bringing its total holdings to 628,946 coins.
Positive sentiment toward cryptocurrencies was also helped this week by the successful New York Stock Exchange debut of Peter Thiel-backed exchange Bullish Inc (NYSE:BLSH). The company’s shares jumped nearly 90% from the IPO price, valuing it at over $10 billion.
Crypto prices today: Ether bullish near record highs, altcoins rally
Broader cryptocurrency prices rose on Friday, capping a strong week amid improved risk appetite. Most major altcoins significantly outperformed Bitcoin this week.
Ether traded less than $100 below its record high on Thursday, also benefiting from increased corporate purchases in recent weeks.
It gained nearly 4% to $4,786.54 — close to its record high of $4,868.8 set in November 2021.
Several U.S. companies have announced plans to buy Ether, mirroring Strategy’s Bitcoin purchases. This trend prompted Standard Chartered to sharply raise its 2025 price target for Ether to $7,500 from $4,000.
Among other altcoins, XRP rose 2.6% to $3.3038. Solana and Cardano gained 6.5% and 19.5% respectively, with Cardano also boosted by Grayscale Investments’ plans to list a spot ETF for Cardano.
Among memecoins, Dogecoin rose 6.8%, while $TRUMP gained 7.1%.
See also: "Standard Chartered Issues Ethereum Price Forecast for Year-End"
